AEG Power Solutions, part of parent company 3W Power, has updated its guidance for its financial performance for 2012. The company, which is currently the subject of a friendly takeover bid by Andrem Power, which is itself wholly owned by Nordic Capital Fund VII, expects its revenue to grow to between €430 and €460 million from €428 million in 2011. However, profitability margins are expected to fall as a result of economic factors.
AEG expects an EBITDA margin of between 9% and 11% compared to 12.4% in 2011. First-quarter 2012 revenue and profitability look likely to come in below first-quarter 2011 results.
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The company cites various economic factors as being behind this drop in profitability, including challenges in obtaining project financing, inverter pricing pressures and FiT-related market fluctuations.